Thus far—and the day is still young—the most interesting sentence in a press release might well be the following:
“In the fourth quarter of 2007, the Company also experienced a softening of demand for certain of its International products due to declining European economies.”
The company is Masco Corporation, maker of all things faucet, cabinet and plumbing related, and therefore one of the larger corporate victims of the sub-prime collapse.
Given that international revenues account for a modest 20% or so of Masco’s sales, the highlighting of European demand issues in today’s disappointing earnings release is somewhat of a surprise. Today's conference call should be quite interesting.
Not bloody likely.
I Am Not Making This Up
© 2008 Jeff Matthews
The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews' recommendations. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.